Gallup-McKinley County Schools File Fraud Complaint Against Stride, Inc. Alleging Profit-Driven Abuse of Minority-Majority Public School District

Core Viewpoint - The Gallup-McKinley County Schools (GMCS) Board of Education has filed a complaint against Stride, Inc., alleging fraud and misconduct aimed at maximizing profits at the expense of students, particularly Native American students [1][2]. Allegations of Profit Before Students - The complaint details that Stride executives rejected requests to hire additional teachers, violating New Mexico law, and instead cut staff to meet profit targets [2]. - Whistleblower testimony indicates that Stride's leadership engaged in a disinformation strategy to distract from their misconduct [2]. Financial and Reputational Risk - GMCS Board President Chris Mortensen stated that Stride's financial model prioritized profit over the education of children, resulting in a significant drop in graduation rates from 54% in 2023 to 27.67% in 2024 [3]. - The lawsuit highlights substandard test scores and a loss of public trust as long-term consequences of Stride's practices [3]. Broader Implications - The complaint seeks compensatory and punitive damages, as well as restitution of taxpayer funds, emphasizing the risks associated with publicly traded education models that prioritize shareholder value over educational quality [4]. - Stride is accused of inflating enrollment numbers by retaining "ghost students" to secure state funding and assigning teachers excessive caseloads, exceeding statutory limits [5]. Compliance Violations - Stride allegedly ignored compliance requirements, including background checks and special education services, while suppressing whistleblowers who reported financial directives to delay hiring and deny services [5].